Hindustan Petroleum Corp. Ltd - Q1 FY22 Result Report - YES Securities

(Rating: BUY, TP: Rs410, Upside: 55%)

EBITDA & PAT at Rs 31.9bn (-27% YoY; -32% QoQ) & INR 17.9bn (-36% YoY; -40% QoQ). Profitability during the quarter impacted by a) lower refining throughput on account of planned shutdown at Mumbai refinery and unplanned outage at Vizag refinery and b) Covid 2nd wave impact on petroleum sales.

The refinery throughput and utilization stood sequentially lower at 2.5mmt and 63% (4QFY21: 4.4mmt & 111%) on account of planned maintenance shutdown of 45 days in Mumbai refinery, in order to undertake expansion to 9.5mmt (from 7.5mmt), the expanded capacity in refinery is under-going pre-commissioning trial and would commission around 20th Aug.

With a weak 1QFY22, now behind us we expect HPCL's earnings to gain traction and improve going ahead on a) commissioning of expanded capacity at Mumbai & Vizag refinery.

Maintain BUY with a Mar'23 TP of Rs 410/sh.

Shares of Hindustan Petroleum Corporation Ltd was last trading in BSE at Rs. 264.95 as compared to the previous close of Rs. 271.75. The total number of shares traded during the day was 180029 in over 3061 trades.

The stock hit an intraday high of Rs. 270.75 and intraday low of 262.45. The net turnover during the day was Rs. 47860021.

Source : Equity Bulls

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